global competitiveness index 2012-2013
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CHAPTER 1.1
The Global
Competitiveness Index
20122013: Strengthening
Recovery by Raising
ProductivityXAVIER SALA-I-MARTN
BEAT BILBAO-OSORIO
JENNIFER BLANKE
ROBERTO CROTTI
MARGARETA DRZENIEK HANOUZ
THIERRY GEIGER
CAROLINE KOWorld Economic Forum
At the time of releasing The Global Competitiveness
Report 20122013,the outlook for the world economy
is once again fragile. Global growth remains historically
low for the second year running with major centers of
economic activityparticularly large emerging economies
and key advanced economiesexpected to slow in
201213, confirming the belief that the global economy
is troubled by a slow and weak recovery. As in previous
years, growth remains unequally distributed. Emerging
and developing countries are growing faster than
advanced economies, steadily closing the income gap.
The International Monetary Fund (IMF) estimates
that, in 2012, the euro zone will have contracted by
0.3 percent, while the United States is experiencing a
weak recovery with an uncertain future. Large emerging
economies such as Brazil, the Russian Federation, India,
China, and South Africa are growing somewhat less
than they did in 2011. At the same time, other emerging
marketssuch as developing Asiawill continue to
show robust growth rates, while the Middle East andNorth Africa as well as sub-Saharan African countries
are gaining momentum.
Recent developmentssuch as the danger of a
property bubble in China, a decline in world trade, and
volatile capital flows in emerging marketscould derail
the recovery and have a lasting impact on the global
economy. Arguably, this years deceleration to a large
extent reflects the inability of leaders to address the
many challenges that were already present last year.
Policymakers around the world remain concerned
about high unemployment and the social conditions in
their countries. The political brinkmanship in the United
States continues to affect the outlook for the worlds
largest economy, while the sovereign debt crises and
the danger of a banking system meltdown in peripheral
euro zone countries remain unresolved. The high levels
of public debt coupled with low growth, insufficient
competitiveness, and political gridlock in some European
countries stirred financial markets concerns about
sovereign default and the very viability of the euro.
Given the complexity and the urgency of the situation,
European countries are facing particularly difficult
economic management decisions with challengingpolitical and social ramifications. Although European
leaders do not agree on how to address the immediate
challenges, there is recognition that, in the longer term,
stabilizing the euro and putting Europe on a higher
and more sustainable growth path will necessitate
improvements to the competitiveness of the weaker
member states.
All these developments are highly interrelated
and demand timely, decisive, and coordinated action
by policymakers. In light of these uncertain global
ramifications, sustained structural reforms aimed
at enhancing competitiveness will be necessary for
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countries to stabilize economic growth and ensure the
rising prosperity of their populations going into the future.
Competitive economies drive productivity
enhancements that support high incomes by ensuring
that the mechanisms enabling solid economic
performance are in place.
For more than three decades, the World Economic
Forums annual Global Competitiveness Reports
have studied and benchmarked the many factors
underpinning national competitiveness. From the onset,
the goal has been to provide insight and stimulate the
discussion among all stakeholders on the best strategies
and policies to help countries to overcome the obstacles
to improving competitiveness. In the current challenging
economic environment, our work is a critical reminder of
the importance of structural economic fundamentals for
sustained growth.
Since 2005, the World Economic Forum has
based its competitiveness analysis on the Global
Competitiveness Index (GCI), a comprehensive tool thatmeasures the microeconomic and macroeconomic
foundations of national competitiveness.1
We define competitivenessas the set of institutions,
policies, and factors that determine the level of
productivity of a country.The level of productivity, in
turn, sets the level of prosperity that can be earned by
an economy. The productivity level also determines the
rates of return obtained by investments in an economy,
which in turn are the fundamental drivers of its growth
rates. In other words, a more competitive economy is
one that is likely to sustain growth.
The concept of competitiveness thus involves static
and dynamic components. Although the productivity of
a country determines its ability to sustain a high levelof
income, it is also one of the central determinants of its
returns to investment, which is one of the key factors
explaining an economysgrowth potential.
THE 12 PILLARS OF COMPETITIVENESS
Many determinants drive productivity and
competitiveness. Understanding the factors behind
this process has occupied the minds of economists
for hundreds of years, engendering theories rangingfrom Adam Smiths focus on specialization and the
division of labor to neoclassical economists emphasis
on investment in physical capital and infrastructure,2
and, more recently, to interest in other mechanisms
such as education and training, technological progress,
macroeconomic stability, good governance, firm
sophistication, and market efficiency, among others.
While all of these factors are likely to be important for
competitiveness and growth, they are not mutually
exclusivetwo or more of them can be significant at the
same time, and in fact that is what has been shown in
the economic literature.3
This open-endedness is captured within the GCI
by including a weighted average of many different
components, each measuring a different aspect of
competitiveness. These components are grouped into 12
pillars of competitiveness (see Figure 1):
First pillar: Institutions
The institutional environment is determined by the legal
and administrative framework within which individuals,
firms, and governments interact to generate wealth. The
importance of a sound and fair institutional environment
became even more apparent during the recent economic
and financial crisis and is especially crucial for further
solidifying the fragile recovery given the increasing role
played by the state at the international level and for the
economies of many countries.
The quality of institutions has a strong bearing on
competitiveness and growth.4It influences investment
decisions and the organization of production and plays
a key role in the ways in which societies distribute thebenefits and bear the costs of development strategies
and policies. For example, owners of land, corporate
shares, or intellectual property are unwilling to invest in
the improvement and upkeep of their property if their
rights as owners are not protected.5
The role of institutions goes beyond the legal
framework. Government attitudes toward markets
and freedoms and the efficiency of its operations
are also very important: excessive bureaucracy and
red tape,6overregulation, corruption, dishonesty in
dealing with public contracts, lack of transparency and
trustworthiness, inability to provide appropriate services
for the business sector, and political dependence of
the judicial system impose significant economic costs
to businesses and slow the process of economic
development.
In addition, the proper management of public
finances is also critical to ensuring trust in the national
business environment. Indicators capturing the quality
of government management of public finances are
therefore included here to complement the measures of
macroeconomic stability captured in pillar 3 below.
Although the economic literature has focused mainlyon public institutions, private institutions are also an
important element in the process of creating wealth.
The recent global financial crisis, along with numerous
corporate scandals, have highlighted the relevance of
accounting and reporting standards and transparency
for preventing fraud and mismanagement, ensuring good
governance, and maintaining investor and consumer
confidence. An economy is well served by businesses
that are run honestly, where managers abide by strong
ethical practices in their dealings with the government,
other firms, and the public at large.7Private-sector
transparency is indispensable to business, and can be
brought about through the use of standards as well as
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auditing and accounting practices that ensure access to
information in a timely manner.8
Second pillar: Infrastructure
Extensive and efficient infrastructure is critical for
ensuring the effective functioning of the economy, as
it is an important factor in determining the location of
economic activity and the kinds of activities or sectors
that can develop in a particular instance. Well-developed
infrastructure reduces the effect of distance between
regions, integrating the national market and connecting it
at low cost to markets in other countries and regions. In
addition, the quality and extensiveness of infrastructure
networks significantly impact economic growth and
reduce income inequalities and poverty in a variety of
ways.9A well-developed transport and communications
infrastructure network is a prerequisite for the access of
less-developed communities to core economic activities
and services.
Effective modes of transportincluding qualityroads, railroads, ports, and air transportenable
entrepreneurs to get their goods and services to
market in a secure and timely manner and facilitate
the movement of workers to the most suitable jobs.
Economies also depend on electricity supplies that are
free of interruptions and shortages so that businesses
and factories can work unimpeded. Finally, a solid
and extensive telecommunications network allows for
a rapid and free flow of information, which increases
overall economic efficiency by helping to ensure that
businesses can communicate and decisions are made
by economic actors taking into account all available
relevant information.
Third pillar: Macroeconomic environment
The stability of the macroeconomic environment is
important for business and, therefore, is important for
the overall competitiveness of a country.10Although
it is certainly true that macroeconomic stability alone
cannot increase the productivity of a nation, it is also
recognized that macroeconomic instability harms the
economy, as we have seen over the past years, notably
in the European context. The government cannotprovide services efficiently if it has to make high-interest
payments on its past debts. Running fiscal deficits limits
the governments future ability to react to business
cycles and to invest in competitiveness-enhancing
measures. Firms cannot operate efficiently when inflation
rates are out of hand. In sum, the economy cannot grow
in a sustainable manner unless the macro environment
is stable. Macroeconomic stability has captured the
attention of the public most recently when some
European countries needed the support of the IMF and
other euro zone economies to prevent sovereign default,
as their public debt reached unsustainable levels.
It is important to note that this pillar evaluates
the stability of the macroeconomic environment, so it
does not directly take into account the way in which
public accounts are managed by the government. This
qualitative dimension is captured in the institutions pillar
described above.
Fourth pillar: Health and primary education
A healthy workforce is vital to a countrys
competitiveness and productivity. Workers who are
ill cannot function to their potential and will be less
productive. Poor health leads to significant costs to
business, as sick workers are often absent or operate at
lower levels of efficiency. Investment in the provision of
health services is thus critical for clear economic, as well
as moral, considerations.11
In addition to health, this pillar takes into account the
quantity and quality of the basic education received by
the population. Basic education increases the efficiency
of each individual worker. Moreover, workers who havereceived little formal education can carry out only simple
manual tasks and find it much more difficult to adapt to
more advanced production processes and techniques,
and therefore contribute less to come up with or execute
innovations. In other words, lack of basic education
can become a constraint on business development,
with firms finding it difficult to move up the value chain
by producing more sophisticated or value-intensive
products with existing human resources.
For the longer term, it will be essential to avoid
significant reductions in resource allocation to these
critical areas, in spite of the fact that government
budgets will need to be cut to reduce the deficits and
debt burden.
Fifth pillar: Higher education and training
Quality higher education and training is particularly
crucial for economies that want to move up the value
chain beyond simple production processes and
products.12In particular, todays globalizing economy
requires countries to nurture pools of well-educated
workers who are able to perform complex tasks and
adapt rapidly to their changing environment and theevolving needs of the economy. This pillar measures
secondary and tertiary enrollment rates as well as
the quality of education as evaluated by the business
community. The extent of staff training is also taken into
consideration because of the importance of vocational
and continuous on-the-job trainingwhich is neglected
in many economiesfor ensuring a constant upgrading
of workers skills.
Sixth pillar: Goods market efficiency
Countries with efficient goods markets are well
positioned to produce the right mix of products and
services given their particular supply-and-demand
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conditions, as well as to ensure that these goods can
be most effectively traded in the economy. Healthy
market competition, both domestic and foreign, is
important in driving market efficiency and thus business
productivity by ensuring that the most efficient firms,
producing goods demanded by the market, are those
that thrive. The best possible environment for the
exchange of goods requires a minimum of impediments
to business activity through government intervention. For
example, competitiveness is hindered by distortionary or
burdensome taxes and by restrictive and discriminatory
rules on foreign direct investment (FDI)limiting foreign
ownershipas well as on international trade. The
recent economic crisis has highlighted the degree of
interdependence of economies worldwide and the
degree to which growth depends on open markets.
Protectionist measures are counterproductive as they
reduce aggregate economic activity.
Market efficiency also depends on demand
conditions such as customer orientation and buyersophistication. For cultural or historical reasons,
customers may be more demanding in some countries
than in others. This can create an important competitive
advantage, as it forces companies to be more innovative
and customer-oriented and thus imposes the discipline
necessary for efficiency to be achieved in the market.
Seventh pillar: Labor market efficiency
The efficiency and flexibilit y of the labor market are
critical for ensuring that workers are allocated to their
most effective use in the economy and provided with
incentives to give their best effort in their jobs. Labor
markets must therefore have the flexibility to shift
workers from one economic activity to another rapidly
and at low cost, and to allow for wage fluctuations
without much social disruption.13The importance of
well-functioning labor markets has been dramatically
highlighted by last years events in Arab countries, where
rigid labor markets were an important cause of high
youth unemployment, sparking social unrest in Tunisia
that then spread across the region. Youth unemployment
is also high in a number of European countries, where
important barriers to entry into the labor market remainin place.
Efficient labor markets must also ensure a clear
relationship between worker incentives and their
efforts to promote meritocracy at the workplace, and
they must provide equity in the business environment
between women and men. Taken together these factors
have a positive effect on worker performance and the
attractiveness of the country for talent, two aspects that
are growing more important as talent shortages loom on
the horizon.
Eighth pillar: Financial market development
The recent economic crisis has highlighted the central
role of a sound and well-functioning financial sector
for economic activities. An efficient financial sector
allocates the resources saved by a nations citizens, as
well as those entering the economy from abroad, to their
most productive uses. It channels resources to those
entrepreneurial or investment projects with the highest
expected rates of return rather than to the politically
connected. A thorough and proper assessment of risk is
therefore a key ingredient of a sound financial market.
Business investment is also critical to productivity.
Therefore economies require sophisticated financial
markets that can make capital available for private-sector
investment from such sources as loans from a sound
banking sector, well-regulated securities exchanges,
venture capital, and other financial products. In order to
fulfill all those functions, the banking sector needs to be
trustworthy and transparent, andas has been made
so clear recentlyfinancial markets need appropriateregulation to protect investors and other actors in the
economy at large.
Ninth pillar: Technological readiness
In todays globalized world, technology is increasingly
essential for firms to compete and prosper. The
technological readiness pillar measures the agility with
which an economy adopts existing technologies to
enhance the productivity of its industries, with specific
emphasis on its capacity to fully leverage information
and communication technologies (ICT) in daily activities
and production processes for increased efficiency
and enabling innovation for competitiveness.14ICT has
evolved into the general purpose technology of our
time,15given the critical spillovers to the other economic
sectors and their role as industry-wide enabling
infrastructure. Therefore ICT access and usage are key
enablers of countries overall technological readiness.
Whether the technology used has or has not
been developed within national borders is irrelevant
for its ability to enhance productivity. The central
point is that the firms operating in the country need
to have access to advanced products and blueprintsand the ability to absorb and use them. Among the
main sources of foreign technology, FDI often plays
a key role, especially for countries at a lower stage of
technological development. It is important to note that, in
this context, the level of technology available to firms in
a country needs to be distinguished from the countrys
ability to conduct blue-sky research and develop new
technologies for innovation that expand the frontiers
of knowledge. That is why we separate technological
readiness from innovation, captured in the 12th pillar,
described below.
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Tenth pillar: Market size
The size of the market affects productivity since large
markets allow firms to exploit economies of scale.
Traditionally, the markets available to f irms have
been constrained by national borders. In the era of
globalization, international markets can to a certain
extent substitute for domestic markets, especially for
small countries. Vast empirical evidence shows that
trade openness is positively associated with growth.
Even if some recent research casts doubts on the
robustness of this relationship, there is a general sense
that trade has a positive effect on growth, especially
for countries with small domestic markets.16The case
of the European Union illustrates the importance of the
market size for competitiveness, as important efficiency
gains were realized through closer integration. Although
the reduction of trade barriers and the harmonization of
standards within the European Union have contributed
to raising exports within the region, many barriers to a
true single market, in particular in services, remain inplace and lead to important border effects. Therefore
we continue to use the size of the national domestic and
foreign market in the Index.
Thus exports can be thought of as a substitute for
domestic demand in determining the size of the market
for the firms of a country.17By including both domestic
and foreign markets in our measure of market size, we
give credit to export-driven economies and geographic
areas (such as the European Union) that are divided into
many countries but have a single common market.
Eleventh pillar: Business sophistication
There is no doubt that sophisticated business practices
are conducive to higher efficiency in the production of
goods and services. Business sophistication concerns
two elements that are intricately linked: the quality of a
countrys overall business networks and the quality of
individual firms operations and strategies. These factors
are particularly important for countries at an advanced
stage of development when, to a large extent, the
more basic sources of productivity improvements have
been exhausted. The quality of a countrys business
networks and supporting industries, as measured bythe quantity and quality of local suppliers and the extent
of their interaction, is important for a variety of reasons.
When companies and suppliers from a particular
sector are interconnected in geographically proximate
groups, called clusters,efficiency is heightened, greater
opportunities for innovation in processes and products
are created, and barriers to entry for new firms are
reduced. Individual firms advanced operations and
strategies (branding, marketing, distribution, advanced
production processes, and the production of unique and
sophisticated products) spill over into the economy and
lead to sophisticated and modern business processes
across the countrys business sectors.
Twelfth pillar: Innovation
Innovation can emerge from new technological and non-
technological knowledge. Non-technological innovations
are closely related to the know-how, skills, and working
conditions that are embedded in organizations and
are therefore largely covered by the eleventh pillar of
the GCI. The final pillar of competitiveness focuses on
technological innovation. Although substantial gains
can be obtained by improving institutions, building
infrastructure, reducing macroeconomic instability, or
improving human capital, all these factors eventually
seem to run into diminishing returns. The same is true for
the efficiency of the labor, financial, and goods markets.
In the long run, standards of living can be largely
enhanced by technological innovation. Technological
breakthroughs have been at the basis of many of the
productivity gains that our economies have historically
experienced. These range from the industrial revolution
in the 18th century and the invention of the steam engine
and the generation of electricity to the more recent digitalrevolution. The latter is transforming not only the way
things are being done, but also opening a wider range
of new possibilities in terms of products and services.
Innovation is particularly important for economies as they
approach the frontiers of knowledge and the possibility
of generating more value by only integrating and
adapting exogenous technologies tends to disappear.18
Although less-advanced countries can still improve
their productivity by adopting existing technologies
or making incremental improvements in other areas,
for those that have reached the innovation stage of
development this is no longer sufficient for increasing
productivity. Firms in these countries must design
and develop cutting-edge products and processes to
maintain a competitive edge and move toward higher-
value-added activities. This progression requires an
environment that is conducive to innovative activity and
supported by both the public and the private sectors. In
particular, it means sufficient investment in research and
development (R&D), especially by the private sector; the
presence of high-quality scientific research institutions
that can generate the basic knowledge needed to build
the new technologies; extensive collaboration in researchand technological developments between universities
and industry; and the protection of intellectual property,
in addition to high levels of competition and access
to venture capital and financing that are analyzed in
other pillars of the Index. In light of the recent sluggish
recovery and rising fiscal pressures faced by advanced
economies, it is important that public and private sectors
resist pressures to cut back on the R&D spending that
will be so critical for sustainable growth going into the
future.
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The interrelation of the 12 pillarsWhile we report the results of the 12 pillars of
competitiveness separately, it is important to keep
in mind that they are not independent: they tend to
reinforce each other, and a weakness in one area often
has a negative impact in others. For example, a strong
innovation capacity (pillar 12) will be very difficult to
achieve without a healthy, well-educated and trained
workforce (pillars 4 and 5) that is adept at absorbing new
technologies (pillar 9), and without sufficient financing
(pillar 8) for R&D or an efficient goods market that makes
it possible to take new innovations to market (pillar 6).Although the pillars are aggregated into a single index,
measures are reported for the 12 pillars separately
because such details provide a sense of the specific
areas in which a particular country needs to improve.
The appendix describes the exact composition of
the GCI and technical details of its construction.
STAGES OF DEVELOPMENT AND THE WEIGHTED
INDEX
While all of the pillars described above will matter to a
certain extent for all economies, it is clear that they will
affect them in different ways: the best way for Cambodia
to improve its competitiveness is not the same as the
best way for France to do so. This is because Cambodia
and France are in different stages of development: as
countries move along the development path, wages tend
to increase and, in order to sustain this higher income,
labor productivity must improve.
In line with the economic theory of stages of
development, the GCI assumes that economies in the
first stage are mainly factor-drivenand compete based
on their factor endowmentsprimarily low-skilled labor
and natural resources.19Companies compete on the
basis of price and sell basic products or commodities,
with their low productivity reflected in low wages.Maintaining competitiveness at this stage of development
hinges primarily on well-functioning public and private
institutions (pillar 1), a well-developed infrastructure
(pillar 2), a stable macroeconomic environment (pillar 3),
and a healthy workforce that has received at least a
basic education (pillar 4).
As a country becomes more competitive,
productivity will increase and wages will rise with
advancing development. Countries will then move
into the efficiency-driven stage of development, when
they must begin to develop more efficient production
processes and increase product quality because
wages have risen and they cannot increase prices. At
Figure 1: The Global Competitiveness Index framework
Key for
factor-driven
economies
Key forefficiency-driven
economies
Key forinnovation-driven
economies
Pillar 1. Institutions
Pillar 2. Infrastructure
Pillar 3. Macroeconomic environment
Pillar 4. Health and primary education
Pillar 11. Business sophistication
Pillar 12. Innovation
Pillar 5. Higher education and
training
Pillar 6. Goods market efficiency
Pillar 7. Labor market efficiency
Pillar 8. Financial market
development
Pillar 9. Technological readiness
Pillar 10. Market size
Basic requirements
subindex
Efficiency enhancers
subindex
Innovation and sophistication
factors subindex
Note: See the appendix for the detailed structure of the GCI.
GLOBAL COMPETITIVENESS INDEX
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Table 1: Subindex weights and income thresholds for stages of development
STAGES OF DEVELOPMENT
Stage 1: Transition from Stage 2: Transition from Stage 3:Factor-driven stage 1 to stage 2 Efficiency-driven stage 2 to stage 3 Innovation-driven
GDP per capita (US$) thresholds* 17,000
Weight for basic requirements subindex 60% 4060% 40% 2040% 20%
Weight for efficiency enhancers subindex 35% 3550% 50% 50% 50%
Weight for innovation and sophistication factors 5% 510% 10% 1030% 30%
Note: See individual country/economy profiles for the exact applied weights.
* For economies with a high dependency on mineral resources, GDP per capita is not the sole criterion for the determination of the stage of development. See text for details.
this point, competitiveness is increasingly driven by
higher education and training (pillar 5), efficient goods
markets (pillar 6), well-functioning labor markets (pillar 7),
developed financial markets (pillar 8), the ability to
harness the benefits of existing technologies (pillar 9),
and a large domestic or foreign market (pillar 10).
Finally, as countries move into theinnovation-driven
stage, wages will have risen by so much that they are
able to sustain those higher wages and the associated
standard of living only if their businesses are able to
compete with new and/or unique products, services,
models, and processes. At this stage, companies
must compete by producing new and different goods
through new technologies (pillar 12) and/or the most
sophisticated production processes or business models
(pillar 11).
The GCI takes the stages of development into
account by attributing higher relative weights to thosepillars that are more relevant for an economy given its
particular stage of development. That is, although all
12 pillars matter to a certain extent for all countries, the
relative importance of each one depends on a countrys
particular stage of development. To implement this
concept, the pillars are organized into three subindexes,
each critical to a particular stage of development.
Thebasic requirements subindexgroups those
pillars most critical for countries in the factor-driven
stage. The efficiency enhancers subindexincludes
those pillars critical for countries in the efficiency-driven
stage. And theinnovation and sophistication factors
subindexincludes the pillars critical to countries in the
innovation-driven stage. The three subindexes are shown
in Figure 1.
The weights attributed to each subindex in every
stage of development are shown in Table 1. To obtain
the weights shown in the table, a maximum likelihood
regression of GDP per capita was run against each
subindex for past years, allowing for different coefficients
for each stage of development.20The rounding of these
econometric estimates led to the choice of weights
displayed in Table 1.
Implementation of stages of development
Two criteria are used to allocate countr ies into stages of
development. The first is the level of GDP per capita at
market exchange rates. This widely available measure
is used as a proxy for wages, because internationally
comparable data on wages are not available for all
countries covered. The thresholds used are also shown
in Table 1. A second criterion is used to adjust for
countries that are wealthy, but where prosperity is based
on the extraction of resources. This is measured by the
share of exports of mineral goods in total exports (goods
and services), and assumes that countries that export
more than 70 percent of mineral products (measured
using a five-year average) are to a large extent factor
driven.21
Any countries falling in between two of the three
stages are considered to be in transition. For these
countries, the weights change smoothly as a countrydevelops, reflecting the smooth transition from one
stage of development to another. This allows us
to place increasingly more weight on those areas
that are becoming more important for the countrys
competitiveness as the country develops, ensuring that
the GCI can gradually penalize those countries that
are not preparing for the next stage. The classification
of countries into stages of development is shown in
Table 2.
DATA SOURCES
To measure these concepts, the GCI uses statist ical
data such as enrollment rates, government debt, budget
deficit, and life expectancy, which are obtained from
internationally recognized agencies, notably the United
Nations Educational, Scientific and Cultural Organization
(UNESCO), the IMF, and the World Health Organization
(WHO). The descriptions and data sources of all these
statistical variables are presented in the Technical Notes
and Sources at the end of this Report.Furthermore,
the GCI uses data from the World Economic Forums
annual Executive Opinion Survey (Survey) to capture
concepts that require a more qualitative assessmentor for which internationally comparable statistical data
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are not available for the entire set of economies. The
Survey process and the statistical treatment of data are
described in detail in Chapter 1.3 of this Report.
ADJUSTMENTS TO THE GCIA few minor adjustments have been made to the
GCI structure this year. Within themacroeconomic
environment pillar (3rd),the interest rate spread has
been removed from the Index because of limitations
in the international comparability of these data.
Furthermore, mobile broadband was added to the
technological readiness (9th)pillar in order to take into
account the rapidly expanding access to the Internet
via mobile devices. And a variable capturing the extent
to which governments provide services to the business
community, which has been collected through theExecutive Opinion Survey, was added to theinstitutions
pillar (1st).For the patent indicator in theinnovation pillar
(12th),the source has been changed to include data
based on the Patents Co-operations Treaty instead of
the US Patent and Trademark Office (USPTO), which
had been used until now. These data are collected
and published jointly by the World Intellectual PropertyOrganization and the Organisation for Economic Co-
operation and Development (OECD). They record patent
applications globally, not just in the United States,
therefore eliminating a possible geographical bias.22
Finally, the Rigidity of Employment Index was dropped
from thelabor market ef ficiency pillar (7th),as the World
Bank ceased to provide this indicator.23
COUNTRY COVERAGE
The coverage of this year has increased from 142 to 144
economies. The newly covered countries are Gabon,Guinea, Liberia, Seychelles, and Sierra Leone. Libya
was re-included after a year of absence as we were
Table 2: Countries/economies at each stage of development
Stage 1:Factor-driven(38 economies)
Transition fromstage 1 to stage 2(17 economies)
Stage 2:Efficiency-driven(33 economies)
Transition fromstage 2 to stage 3(21 economies)
Stage 3:Innovation-driven(35 economies)
Bangladesh Algeria Albania Argentina Australia
Benin Azerbaijan Armenia Bahrain Austria
Burkina Faso Bolivia Bosnia and Herzegovina Barbados Belgium
Burundi Botswana Bulgaria Brazil Canada
Cambodia Brunei Darussalam Cape Verde Chile Cyprus
Cameroon Egypt China Croatia Czech Republic
Chad Gabon Colombia Estonia Denmark
Cte dIvoire Honduras Costa Rica Hungary Finland
Ethiopia Iran, Islamic rep. Dominican Republic Kazakhstan France
Gambia, The Kuwait Ecuador Latvia Germany
Ghana Libya El Salvador Lebanon Greece
Guinea Mongolia Georgia Lithuania Hong Kong SAR
Haiti Philippines Guatemala Malaysia Iceland
India Qatar Guyana Mexico Ireland
Kenya Saudi Arabia Indonesia Oman Israel
Kyrgyz Republic Sri Lanka Jamaica Poland Italy
Lesotho Venezuela Jordan Russian Federation Japan
Liberia Macedonia, FYR Seychelles Korea, Rep.
Madagascar Mauritius Trinidad and Tobago Luxembourg
Malawi Montenegro Turkey MaltaMali Morocco Uruguay Netherlands
Mauritania Namibia New Zealand
Moldova Panama Norway
Mozambique Paraguay Portugal
Nepal Peru Puerto Rico
Nicaragua Romania Singapore
Nigeria Serbia Slovak Republic
Pakistan South Africa Slovenia
Rwanda Suriname Spain
Senegal Swaziland Sweden
Sierra Leone Thailand Switzerland
Tajikistan Timor-Leste Taiwan, China
Tanzania Ukraine United Arab Emirates
Uganda United Kingdom
Vietnam United StatesYemen
Zambia
Zimbabwe
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not able to conduct the Survey because of civil unrest
in 2011. Three previously covered countries had to be
excluded from this years Report.Survey data could not
be collected in Belize and Angola; in Syria, the security
situation did not allow the Survey to be carried out. In the
case of Tunisia we decided not to report the results this
year because an important structural break in the data
makes comparisons with past years difficult. We hope to
re-include these countries in the future.
THE GLOBAL COMPETITIVENESS INDEX 20122013
RANKINGS
Tables 3 through 7 provide the detailed rankings of
this years GCI. The following sections discuss the
findings of the GCI 20122013 for the top performers
globally, as well as for a number of selected economies
in each of the five following regions: Europe and North
America, Asia and the Pacif ic, Latin America and the
Caribbean, the Middle East and North Africa, and sub-
Saharan Africa.
Box 1 presents a comparative study ofthe GCI results, highlighting the profound and persisting
competitiveness divide across and within the different
world regions.
Top 10
As in previous years, this years top 10 remain dominated
by a number of European countries, with Switzerland,
Finland, Sweden, the Netherlands, Germany, and the
United Kingdom confirming their place among the
most competitive economies. Along with the United
States, three Asian economies also figure in top 10,
with Singapore remaining the second-most competitive
economy in the world, and Hong Kong SAR and Japan
placing 9th and 10th.
Switzerlandretains its 1st place position again this
year as a result of its continuing strong performance
across the board. The countrys most notable
strengths are related to innovation and labor market
efficiency, where it tops the GCI rankings, as well as the
sophistication of its business sector, which is ranked
2nd. Switzerlands scientific research institutions are
among the worlds best, and the strong collaboration
between its academic and business sectors, combinedwith high company spending on R&D, ensures that
much of this research is translated into marketable
products and processes reinforced by strong intellectual
property protection. This robust innovative capacity is
captured by its high rate of patenting per capita, for
which Switzerland ranks a remarkable 2nd worldwide.
Productivity is further enhanced by a business sector
that offers excellent on-the-job-training opportunities,
both citizens and private companies that are proactive
at adapting the latest technologies, and labor markets
that balance employee protection with the interests of
employers. Moreover, public institutions in Switzerland
are among the most effective and transparent in the
world (5th). Governance structures ensure a level playing
field, enhancing business confidence; these include
an independent judiciary, a strong rule of law, and a
highly accountable public sector. Competitiveness
is also buttressed by excellent infrastructure (5th),
well-functioning goods markets (7th), and highly
developed financial markets (9th). Finally, Switzerlands
macroeconomic environment is among the most stable
in the world (8th) at a time when many neighboring
economies continue to struggle in this area.
While Switzerland demonstrates many competitive
strengths, maintaining its innovative capacity will require
boosting university enrollment rate, which continues to
lag behind that of many other high-innovation countries,
although this has been increasing in recent years.
Singaporeretains its place at 2nd position as
a result of an outstanding performance across the
entire Index. The country features in the top 3 in
seven of the 12 categories of the Index and appears
in the top 10 of three others. Its public and privateinstitutions are rated as the best in the world for the
fifth year in a row. It also ranks 1st for the efficiency
of its goods and labor markets, and places 2nd in
terms of financial market development. Singapore also
has world-class infrastructure (2nd), with excellent
roads, ports, and air transport facilities. In addition,
the countrys competitiveness is reinforced by a strong
focus on education, which has translated into a steady
improvement in the higher education and training pillar
(2nd) in recent years, thus providing individuals with the
skills needed for a rapidly changing global economy.
Finlandmoves up one place since last year to
reach 3rd position on the back of small improvements
in a number of areas. Similar to other countries in
the region, the country boasts well-functioning and
highly transparent public institutions (2nd), topping
several indicators included in this category. Its private
institutions, ranked 3rd overall, are also seen to be
among the best run and most ethical in the world.
Finland occupies the top position both in the health
and primary education pillar as well as the higher
education and training pillar, the result of a strong focus
on education over recent decades. This has providedthe workforce with the skills needed to adapt rapidly to
a changing environment and has laid the groundwork
for high levels of technological adoption and innovation.
Finland is one of the most innovative countries in
Europe, ranking 2nd, behind only Switzerland, on the
related pillar. Improving the countrys capacity to adopt
the latest technologies (ranked 25th) could lead to
important synergies that in turn could corroborate the
countrys position as one of the worlds most innovative
economies. Finlands macroeconomic environment
weakens slightly on the back of rising inflation (above 3
percent), but fares comparatively well when contrasted
with other euro-area economies.
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Box 1: Competitiveness from above: The GCI heat map
Figure 1: The GCI heat map
* The interval [x,y[ is inclusive of xbut exclusive of y. Highest value; lowest value.
Figure 1 identifies the competitiveness hotspots and the
regions or countries with weak performance according to the
Global Competitiveness Index (GCI).The 10 best-performing
countries are shaded dark red. The remaining countriesare colored in intermediate tones moving from orange, the
second-best performing group, through yellow, light blue,
medium blue, and dark blue; this last color identifies the least-
competitive nations according to the GCI.
The map revea ls that the hotspots remain concentrated
in Europe, North America, and a handful of advanced
economies in Asia and the Pacific. Despite decades of brisk
economic growth in some developing regions (such as Latin
America and Afr ica), the map revea ls that the profound
competitiveness gap of these regions with more advanced
economies persists. This competitiveness deficit in vast
swaths of the developing world raises questions about the
sustainability of growth patterns.
Sub-Saharan Africa,for example, continues to face thebiggest competitiveness challenges of all regions (see Box
5). As shown on the map, a vast majority of the continents
countries covered in this Reportfall into the group of least-
competitive economies (dark blue). Out of the regions
32 countries included in the GCI, only Botswana, Gabon,
Namibia, the Seychelles (medium blue), Mauritius, Rwanda,
and South Africa (light blue) are in the next higher categories.
With six of the ten best-performing countries, Northernand Western Europeis a competitiveness hotspot. Theassessment is considerably bleaker when looking at
Southern and Eastern Europe. On the map, the patchwork of
colorsranging from dark red to medium bluereveals the
competitiveness divide within Europe. Indeed, the lack of
competitiveness of several of its members is among the root
causes of the current difficulties in the euro zone (see Box
2). The map also shows that within the European Union thetraditional distinction made between the 15 original members
and the 12 countries that joined after 2004 does not hold
from a competitiveness point of view.
The map draws a mixed picture of Asia, too. Scat tered
across the region, theAsian Tigersand Japancan beconsidered competitiveness hotspots. Within this group of
five advanced economies, Singapore, Hong Kong SAR, and
Japan enter the top 10, and Taiwan (China), and the Republic
of Korea rank only a few notches behind. The developing
nations of Southeast Asiaare not yet competitivenesschampions, but their group performance is quite remarkable.
Led by Malaysia, all these economies achieve a GCI score
above 4.0, the theoretical average of the GCI, and none of
them falls into the lowest, dark-blue category. This contrastsstarkly with the situation in South Asia,where best-performing India ranks a middling 59th and several countries
appear in dark blue, including Pakistan and Bangladesh.
In the Middle East and North Africa,Israel and the sixmembers of the Gulf Cooperation Council perform strongly.
But elsewhere in the region, the lack of competitiveness of the
Levantine and North African countries is worrisome. Finally,
the map also reveals that the BRICSdo not form a uniformgroup in terms of competitiveness, as seen on the map where
China is the only member appearing in a relatively strong
yellow.
GCI score*
n [5.39,5.72]
n [5.00,5.39[
n [4.60,5.00[
n [4.20,4.60[
n [3.80,4.20[
n [2.78,3.80[
n Not covered
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Table 3: The Global Competitiveness Index 20122013 rankings and 20112012 comparisons
Rank among
Score GCI 20112012 GCI 20112012Country/Economy Rank/144 (17) sample rank
Switzerland 1 5.72 1 1
Singapore 2 5.67 2 2
Finland 3 5.55 3 4
Sweden 4 5.53 4 3
Netherlands 5 5.50 5 7Germany 6 5.48 6 6
United States 7 5.47 7 5
United Kingdom 8 5.45 8 10
Hong Kong SAR 9 5.41 9 11
Japan 10 5.40 10 9
Qatar 11 5.38 11 14
Denmark 12 5.29 12 8
Taiwan, China 13 5.28 13 13
Canada 14 5.27 14 12
Norway 15 5.27 15 16
Austria 16 5.22 16 19
Belgium 17 5.21 17 15
Saudi Arabia 18 5.19 18 17
Korea, Rep. 19 5.12 19 24
Australia 20 5.12 20 20
France 21 5.11 21 18Luxembourg 22 5.09 22 23
New Zealand 23 5.09 23 25
United Arab Emirates 24 5.07 24 27
Malaysia 25 5.06 25 21
Israel 26 5.02 26 22
Ireland 27 4.91 27 29
Brunei Darussalam 28 4.87 28 28
China 29 4.83 29 26
Iceland 30 4.74 30 30
Puerto Rico 31 4.67 31 35
Oman 32 4.65 32 32
Chile 33 4.65 33 31
Estonia 34 4.64 34 33
Bahrain 35 4.63 35 37
Spain 36 4.60 36 36
Kuwait 37 4.56 37 34
Thailand 38 4.52 38 39
Czech Republic 39 4.51 39 38
Panama 40 4.49 40 49
Poland 41 4.46 41 41
Italy 42 4.46 42 43
Turkey 43 4.45 43 59
Barbados 44 4.42 44 42
Lithuania 45 4.41 45 44
Azerbaijan 46 4.41 46 55
Malta 47 4.41 47 51
Brazil 48 4.40 48 53
Portugal 49 4.40 49 45
Indonesia 50 4.40 50 46
Kazakhstan 51 4.38 51 72
South Africa 52 4.37 52 50
Mexico 53 4.36 53 58
Mauritius 54 4.35 54 54Latvia 55 4.35 55 64
Slovenia 56 4.34 56 57
Costa Rica 57 4.34 57 61
Cyprus 58 4.32 58 47
India 59 4.32 59 56
Hungary 60 4.30 60 48
Peru 61 4.28 61 67
Bulgaria 62 4.27 62 74
Rwanda 63 4.24 63 70
Jordan 64 4.23 64 71
Philippines 65 4.23 65 75
Iran, Islamic Rep. 66 4.22 66 62
Russian Federation 67 4.20 67 66
Sri Lanka 68 4.19 68 52
Colombia 69 4.18 69 68
Morocco 70 4.15 70 73Slovak Republic 71 4.14 71 69
Montenegro 72 4.14 72 60
Rank among
Score GCI 20112012 GCI 20112012Country/Economy Rank/144 (17) sample rank
Ukraine 73 4.14 73 82
Uruguay 74 4.13 74 63
Vietnam 75 4.11 75 65
Seychelles 76 4.10 n/a n/a
Georgia 77 4.07 76 88Romania 78 4.07 77 77
Botswana 79 4.06 78 80
Macedonia, FYR 80 4.04 79 79
Croatia 81 4.04 80 76
Armenia 82 4.02 81 92
Guatemala 83 4.01 82 84
Trinidad and Tobago 84 4.01 83 81
Cambodia 85 4.01 84 97
Ecuador 86 3.94 85 101
Moldova 87 3.94 86 93
Bosnia and Herzegovina 88 3.93 87 100
Albania 89 3.91 88 78
Honduras 90 3.88 89 86
Lebanon 91 3.88 90 89
Namibia 92 3.88 91 83
Mongolia 93 3.87 92 96Argentina 94 3.87 93 85
Serbia 95 3.87 94 95
Greece 96 3.86 95 90
Jamaica 97 3.84 96 107
Gambia, The 98 3.83 97 99
Gabon 99 3.82 n/a n/a
Tajikistan 100 3.80 98 105
El Salvador 101 3.80 99 91
Zambia 102 3.80 100 113
Ghana 103 3.79 101 114
Bolivia 104 3.78 102 103
Dominican Republic 105 3.77 103 110
Kenya 106 3.75 104 102
Egypt 107 3.73 105 94
Nicaragua 108 3.73 106 115
Guyana 109 3.73 107 109
Algeria 110 3.72 108 87
Liberia 111 3.71 n/a n/a
Cameroon 112 3.69 109 116
Libya 113 3.68 n/a n/a
Suriname 114 3.68 110 112
Nigeria 115 3.67 111 127
Paraguay 116 3.67 112 122
Senegal 117 3.66 113 111
Bangladesh 118 3.65 114 108
Benin 119 3.61 115 104
Tanzania 120 3.60 116 120
Ethiopia 121 3.55 117 106
Cape Verde 122 3.55 118 119
Uganda 123 3.53 119 121
Pakistan 124 3.52 120 118
Nepal 125 3.49 121 125
Venezuela 126 3.46 122 124Kyrgyz Republic 127 3.44 123 126
Mali 128 3.43 124 128
Malawi 129 3.38 125 117
Madagascar 130 3.38 126 130
Cte dIvoire 131 3.36 127 129
Zimbabwe 132 3.34 128 132
Burkina Faso 133 3.34 129 136
Mauritania 134 3.32 130 137
Swaziland 135 3.28 131 134
Timor-Leste 136 3.27 132 131
Lesotho 137 3.19 133 135
Mozambique 138 3.17 134 133
Chad 139 3.05 135 142
Yemen 140 2.97 136 138
Guinea 141 2.90 n/a n/a
Haiti 142 2.90 137 141Sierra Leone 143 2.82 n/a n/a
Burundi 144 2.78 138 140
GCI 20122013 GCI 20122013
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Table 4: The Global Competitiveness Index 20122013
SUBINDEXES
Innovation andOVERALL INDEX Basic requirements Efficiency enhancers sophistication factors
Country/Economy Rank Score Rank Score Rank Score Rank Score
Switzerland 1 5.72 2 6.22 5 5.48 1 5.79
Singapore 2 5.67 1 6.34 1 5.65 11 5.27
Finland 3 5.55 4 6.03 9 5.30 3 5.62
Sweden 4 5.53 6 6.01 8 5.32 5 5.56Netherlands 5 5.50 10 5.92 7 5.35 6 5.47
Germany 6 5.48 11 5.86 10 5.27 4 5.57
United States 7 5.47 33 5.12 2 5.63 7 5.42
United Kingdom 8 5.45 24 5.51 4 5.50 9 5.32
Hong Kong SAR 9 5.41 3 6.14 3 5.54 22 4.73
Japan 10 5.40 29 5.30 11 5.27 2 5.67
Qatar 11 5.38 7 5.96 22 4.93 15 5.02
Denmark 12 5.29 16 5.68 15 5.15 12 5.24
Taiwan, China 13 5.28 17 5.67 12 5.24 14 5.08
Canada 14 5.27 14 5.71 6 5.41 21 4.74
Norway 15 5.27 9 5.95 16 5.15 16 5.00
Austria 16 5.22 20 5.63 19 5.01 10 5.30
Belgium 17 5.21 22 5.52 17 5.09 13 5.21
Saudi Arabia 18 5.19 13 5.74 26 4.84 29 4.47
Korea, Rep. 19 5.12 18 5.66 20 5.00 17 4.96
Australia 20 5.12 12 5.75 13 5.20 28 4.56
France 21 5.11 23 5.52 18 5.04 18 4.96
Luxembourg 22 5.09 8 5.96 24 4.87 19 4.89
New Zealand 23 5.09 19 5.65 14 5.16 27 4.60
United Arab Emirates 24 5.07 5 6.03 21 4.94 25 4.64
Malaysia 25 5.06 27 5.38 23 4.89 23 4.70
Israel 26 5.02 37 5.10 27 4.79 8 5.33
Ireland 27 4.91 35 5.11 25 4.85 20 4.87
Brunei Darussalam 28 4.87 21 5.56 68 4.05 62 3.64
China 29 4.83 31 5.25 30 4.64 34 4.05
Iceland 30 4.74 30 5.27 36 4.54 24 4.69
Puerto Rico 31 4.67 48 4.86 33 4.61 26 4.64
Oman 32 4.65 15 5.69 45 4.40 44 3.91
Chile 33 4.65 28 5.35 32 4.63 45 3.87
Estonia 34 4.64 26 5.47 31 4.63 33 4.06
Bahrain 35 4.63 25 5.47 35 4.58 53 3.74
Spain 36 4.60 36 5.11 29 4.67 31 4.14
Kuwait 37 4.56 32 5.21 75 3.98 86 3.36Thailand 38 4.52 45 4.89 47 4.38 55 3.72
Czech Republic 39 4.51 44 4.89 34 4.59 32 4.13
Panama 40 4.49 50 4.83 50 4.36 48 3.83
Poland 41 4.46 61 4.66 28 4.69 61 3.66
Italy 42 4.46 51 4.81 41 4.44 30 4.24
Turkey 43 4.45 57 4.75 42 4.42 50 3.79
Barbados 44 4.42 38 5.09 49 4.37 38 3.97
Lithuania 45 4.41 49 4.84 46 4.38 47 3.83
Azerbaijan 46 4.41 56 4.76 67 4.05 57 3.68
Malta 47 4.41 34 5.12 40 4.46 46 3.85
Brazil 48 4.40 73 4.49 38 4.52 39 3.97
Portugal 49 4.40 40 4.96 44 4.40 37 4.01
Indonesia 50 4.40 58 4.74 58 4.20 40 3.96
Kazakhstan 51 4.38 47 4.86 56 4.24 104 3.25
South Africa 52 4.37 84 4.28 37 4.53 42 3.94
Mexico 53 4.36 63 4.64 53 4.31 49 3.79Mauritius 54 4.35 52 4.80 62 4.14 63 3.63
Latvia 55 4.35 54 4.79 48 4.37 68 3.57
Slovenia 56 4.34 39 5.05 55 4.25 36 4.02
Costa Rica 57 4.34 67 4.61 60 4.18 35 4.04
Cyprus 58 4.32 42 4.94 43 4.41 51 3.77
India 59 4.32 85 4.26 39 4.48 43 3.94
Hungary 60 4.30 55 4.78 52 4.32 58 3.68
Peru 61 4.28 69 4.57 57 4.23 94 3.31
Bulgaria 62 4.27 65 4.63 59 4.18 97 3.30
Rwanda 63 4.24 70 4.56 94 3.77 60 3.66
Jordan 64 4.23 66 4.61 70 4.03 52 3.74
Philippines 65 4.23 80 4.35 61 4.17 64 3.60
Iran, Islamic Rep. 66 4.22 59 4.69 90 3.81 77 3.46
Russian Federation 67 4.20 53 4.79 54 4.26 108 3.16
Sri Lanka 68 4.19 72 4.50 77 3.96 41 3.96
Colombia 69 4.18 77 4.40 63 4.13 66 3.58
Morocco 70 4.15 68 4.60 79 3.94 84 3.38
Slovak Republic 71 4.14 62 4.64 51 4.33 74 3.50
Montenegro 72 4.14 74 4.49 74 3.99 69 3.57
(Contd.)
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Table 4: The Global Competitiveness Index 20122013 (contd.)
SUBINDEXES
Innovation andOVERALL INDEX Basic requirements Efficiency enhancers sophistication factors
Country/Economy Rank Score Rank Score Rank Score Rank Score
Ukraine 73 4.14 79 4.35 65 4.11 79 3.43
Uruguay 74 4.13 43 4.91 73 4.00 78 3.46
Vietnam 75 4.11 91 4.22 71 4.02 90 3.32
Seychelles 76 4.10 46 4.86 91 3.81 87 3.36Georgia 77 4.07 64 4.63 87 3.84 120 3.00
Romania 78 4.07 90 4.22 64 4.12 106 3.20
Botswana 79 4.06 78 4.38 89 3.82 82 3.40
Macedonia, FYR 80 4.04 71 4.52 84 3.85 110 3.13
Croatia 81 4.04 60 4.68 72 4.01 83 3.39
Armenia 82 4.02 76 4.41 82 3.86 98 3.29
Guatemala 83 4.01 88 4.23 81 3.92 70 3.56
Trinidad and Tobago 84 4.01 41 4.95 83 3.85 89 3.33
Cambodia 85 4.01 97 4.14 85 3.84 72 3.53
Ecuador 86 3.94 75 4.42 100 3.68 93 3.32
Moldova 87 3.94 93 4.16 99 3.71 131 2.85
Bosnia and Herzegovina 88 3.93 81 4.33 97 3.75 99 3.28
Albania 89 3.91 87 4.24 92 3.80 113 3.11
Honduras 90 3.88 101 4.08 102 3.66 91 3.32
Lebanon 91 3.88 116 3.79 66 4.06 81 3.41
Namibia 92 3.88 82 4.33 105 3.64 103 3.25
Mongolia 93 3.87 92 4.17 96 3.76 112 3.11
Argentina 94 3.87 96 4.15 86 3.84 88 3.35
Serbia 95 3.87 95 4.15 88 3.83 124 2.96
Greece 96 3.86 98 4.13 69 4.05 85 3.37
Jamaica 97 3.84 114 3.82 80 3.93 80 3.41
Gambia, The 98 3.83 103 4.01 114 3.54 54 3.74
Gabon 99 3.82 86 4.25 116 3.52 139 2.64
Tajikistan 100 3.80 105 3.97 112 3.56 76 3.46
El Salvador 101 3.80 99 4.13 103 3.66 107 3.16
Zambia 102 3.80 108 3.92 108 3.61 67 3.57
Ghana 103 3.79 112 3.85 95 3.77 102 3.27
Bolivia 104 3.78 94 4.15 122 3.35 100 3.28
Dominican Republic 105 3.77 111 3.88 93 3.79 105 3.25
Kenya 106 3.75 123 3.62 76 3.97 56 3.68
Egypt 107 3.73 110 3.91 101 3.67 96 3.31
Nicaragua 108 3.73 104 3.99 119 3.38 116 3.05
Guyana 109 3.73 107 3.93 109 3.61 71 3.54Algeria 110 3.72 89 4.22 136 3.08 144 2.31
Liberia 111 3.71 109 3.92 121 3.36 59 3.67
Cameroon 112 3.69 115 3.80 111 3.57 95 3.31
Libya 113 3.68 102 4.06 131 3.19 127 2.92
Suriname 114 3.68 83 4.29 124 3.32 117 3.01
Nigeria 115 3.67 130 3.52 78 3.96 73 3.53
Paraguay 116 3.67 106 3.94 110 3.59 123 2.97
Senegal 117 3.66 120 3.68 106 3.63 65 3.59
Bangladesh 118 3.65 119 3.72 107 3.62 122 2.98
Benin 119 3.61 113 3.83 125 3.31 111 3.12
Tanzania 120 3.60 122 3.65 113 3.55 92 3.32
Ethiopia 121 3.55 118 3.74 123 3.33 125 2.96
Cape Verde 122 3.55 100 4.08 128 3.22 119 3.01
Uganda 123 3.53 132 3.48 104 3.66 101 3.27
Pakistan 124 3.52 134 3.41 98 3.71 75 3.47
Nepal 125 3.49 121 3.65 126 3.30 133 2.82Venezuela 126 3.46 126 3.54 117 3.46 135 2.78
Kyrgyz Republic 127 3.44 128 3.52 118 3.40 140 2.63
Mali 128 3.43 125 3.55 127 3.26 114 3.11
Malawi 129 3.38 135 3.40 120 3.37 109 3.16
Madagascar 130 3.38 129 3.52 132 3.18 115 3.08
Cte dIvoire 131 3.36 137 3.29 115 3.53 121 2.99
Zimbabwe 132 3.34 127 3.53 135 3.08 128 2.90
Burkina Faso 133 3.34 133 3.45 129 3.22 126 2.94
Mauritania 134 3.32 124 3.60 142 2.88 118 3.01
Swaziland 135 3.28 131 3.49 130 3.21 134 2.80
Timor-Leste 136 3.27 117 3.78 138 2.97 136 2.73
Lesotho 137 3.19 136 3.32 137 3.05 137 2.72
Mozambique 138 3.17 138 3.22 133 3.10 130 2.89
Chad 139 3.05 139 3.15 141 2.91 129 2.89
Yemen 140 2.97 141 3.01 139 2.95 141 2.50
Guinea 141 2.90 143 2.80 134 3.10 132 2.82
Haiti 142 2.90 140 3.02 143 2.76 143 2.41
Sierra Leone 143 2.82 144 2.77 140 2.94 138 2.69
Burundi 144 2.78 142 2.94 144 2.56 142 2.42
Note: Ranks out of 144 economies and scores measured on a 1-to-7 scale.
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Table 5: The Global Competitiveness Index 20122013: Basic requirements
PILLARS
3. Macroeconomic 4. Health andBASIC REQUIREMENTS 1. Institutions 2. Infrastructure environment primary education
Country/Economy Rank Score Rank Score Rank Score Rank Score Rank Score
Albania 87 4.24 84 3.65 91 3.48 98 4.27 79 5.56
Algeria 89 4.22 141 2.66 100 3.16 23 5.71 93 5.37
Argentina 96 4.15 138 2.85 86 3.58 94 4.33 59 5.82
Armenia 76 4.41 71 3.90 80 3.71 83 4.50 80 5.53Australia 12 5.75 18 5.27 18 5.70 26 5.57 13 6.46
Austria 20 5.63 25 5.04 15 5.80 33 5.35 20 6.32
Azerbaijan 56 4.76 63 3.98 71 3.94 18 6.05 107 5.08
Bahrain 25 5.47 21 5.13 29 5.19 29 5.50 38 6.07
Bangladesh 119 3.72 127 3.20 134 2.22 100 4.24 103 5.20
Barbados 38 5.09 24 5.06 22 5.58 134 3.32 16 6.41
Belgium 22 5.52 27 5.00 21 5.68 66 4.66 2 6.75
Benin 113 3.83 99 3.51 122 2.56 76 4.57 111 4.68
Bolivia 94 4.15 119 3.31 108 2.95 49 5.02 97 5.32
Bosnia and Herzegovina 81 4.33 85 3.64 94 3.44 97 4.31 48 5.93
Botswana 78 4.38 33 4.82 87 3.58 81 4.52 114 4.60
Brazil 73 4.49 79 3.78 70 4.00 62 4.73 88 5.43
Brunei Darussalam 21 5.56 31 4.86 57 4.20 1 7.00 31 6.18
Bulgaria 65 4.63 108 3.39 76 3.79 31 5.42 49 5.92
Burkina Faso 133 3.45 83 3.66 136 2.18 85 4.48 139 3.48
Burundi 142 2.94 142 2.59 141 1.87 137 3.15 127 4.16
Cambodia 97 4.14 73 3.84 104 3.08 91 4.39 102 5.25
Cameroon 115 3.80 107 3.40 125 2.51 59 4.79 118 4.49
Canada 14 5.71 11 5.52 13 5.84 51 4.90 7 6.58
Cape Verde 100 4.08 57 4.07 114 2.80 121 3.80 71 5.66
Chad 139 3.15 140 2.73 140 1.89 45 5.12 144 2.85
Chile 28 5.35 28 4.97 45 4.62 14 6.15 74 5.64
China 31 5.25 50 4.22 48 4.46 11 6.22 35 6.11
Colombia 77 4.40 109 3.38 93 3.44 34 5.34 85 5.45
Costa Rica 67 4.61 53 4.13 74 3.80 65 4.68 57 5.82
Cte dIvoire 137 3.29 129 3.16 102 3.10 130 3.48 140 3.40
Croatia 60 4.68 98 3.52 44 4.65 60 4.75 60 5.81
Cyprus 42 4.94 40 4.59 39 4.80 117 3.86 9 6.50
Czech Republic 44 4.89 82 3.67 38 4.81 42 5.19 53 5.87
Denmark 16 5.68 14 5.40 16 5.74 32 5.40 29 6.19
Dominican Republic 111 3.88 126 3.21 105 3.02 105 4.17 106 5.13
Ecuador 75 4.42 131 3.16 90 3.51 37 5.30 67 5.73
Egypt 110 3.91 96 3.56 83 3.61 138 3.12 94 5.35El Salvador 99 4.13 134 3.02 72 3.93 103 4.18 90 5.38
Estonia 26 5.47 30 4.94 41 4.72 20 6.01 27 6.21
Ethiopia 118 3.74 74 3.83 119 2.65 114 3.92 116 4.56
Finland 4 6.03 3 6.03 23 5.58 24 5.70 1 6.82
France 23 5.52 32 4.83 4 6.28 68 4.64 21 6.31
Gabon 86 4.25 67 3.94 117 2.71 9 6.25 128 4.11
Gambia, The 103 4.01 35 4.67 82 3.61 129 3.58 126 4.17
Georgia 64 4.63 61 4.00 53 4.35 88 4.40 61 5.79
Germany 11 5.86 16 5.31 3 6.36 30 5.48 22 6.30
Ghana 112 3.85 75 3.82 110 2.87 108 4.07 112 4.65
Greece 98 4.13 111 3.37 43 4.70 144 2.42 41 6.04
Guatemala 88 4.23 124 3.25 75 3.79 77 4.56 95 5.34
Guinea 143 2.80 128 3.18 142 1.86 142 2.63 138 3.52
Guyana 107 3.93 100 3.50 109 2.91 109 4.02 99 5.29
Haiti 140 3.02 143 2.49 144 1.54 86 4.44 134 3.62
Honduras 101 4.08 118 3.32 101 3.12 80 4.53 96 5.34Hong Kong SAR 3 6.14 10 5.53 1 6.72 15 6.07 26 6.24
Hungary 55 4.78 80 3.70 50 4.39 44 5.15 51 5.89
Iceland 30 5.27 23 5.09 20 5.69 123 3.73 6 6.58
India 85 4.26 70 3.91 84 3.60 99 4.25 101 5.27
Indonesia 58 4.74 72 3.86 78 3.75 25 5.68 70 5.69
Iran, Islamic Rep. 59 4.69 68 3.93 69 4.03 57 4.83 46 5.97
Ireland 35 5.11 19 5.22 25 5.34 131 3.44 12 6.46
Israel 37 5.10 34 4.75 36 4.89 64 4.72 40 6.04
Italy 51 4.81 97 3.56 28 5.19 102 4.23 25 6.27
Jamaica 114 3.82 87 3.62 85 3.59 141 2.89 104 5.19
Japan 29 5.30 22 5.13 11 5.92 124 3.67 10 6.50
Jordan 66 4.61 42 4.50 60 4.17 112 3.94 56 5.84
Kazakhstan 47 4.86 66 3.96 67 4.05 16 6.07 92 5.37
Kenya 123 3.62 106 3.43 103 3.09 133 3.39 115 4.58
Korea, Rep. 18 5.66 62 3.98 9 5.92 10 6.25 11 6.49
Kuwait 32 5.21 51 4.20 52 4.38 4 6.58 72 5.66
Kyrgyz Republic 128 3.52 137 2.92 121 2.59 132 3.41 105 5.18
Latvia 54 4.79 59 4.01 64 4.11 46 5.06 45 5.99
Lebanon 116 3.79 125 3.22 127 2.46 135 3.32 32 6.18
(Contd.)
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Table 5: The Global Competitiveness Index 20122013: Basic requirements (contd.)
PILLARS
3. Macroeconomic 4. Health andBASIC REQUIREMENTS 1. Institutions 2. Infrastructure environment primary education
Country/Economy Rank Score Rank Score Rank Score Rank Score Rank Score
Lesotho 136 3.32 121 3.30 126 2.50 113 3.93 136 3.54
Liberia 109 3.92 45 4.31 115 2.77 82 4.51 130 4.10
Libya 102 4.06 81 3.69 88 3.56 73 4.60 121 4.40
Lithuania 49 4.84 60 4.01 40 4.74 75 4.57 39 6.05Luxembourg 8 5.96 9 5.60 12 5.84 12 6.18 28 6.20
Macedonia, FYR 71 4.52 78 3.80 81 3.65 47 5.04 77 5.59
Madagascar 129 3.52 136 2.94 137 2.13 95 4.33 110 4.68
Malawi 135 3.40 76 3.82 135 2.19 136 3.30 124 4.30
Malaysia 27 5.38 29 4.94 32 5.09 35 5.34 33 6.16
Mali 125 3.55 120 3.31 107 2.96 74 4.59 141 3.36
Malta 34 5.12 37 4.61 34 4.91 71 4.60 19 6.34
Mauritania 124 3.60 122 3.29 113 2.82 89 4.40 133 3.88
Mauritius 52 4.80 39 4.59 54 4.32 87 4.41 54 5.85
Mexico 63 4.64 92 3.59 68 4.03 40 5.21 68 5.71
Moldova 93 4.16 110 3.38 92 3.46 93 4.35 86 5.44
Mongolia 92 4.17 113 3.34 112 2.83 52 4.89 76 5.60
Montenegro 74 4.49 44 4.38 66 4.06 118 3.85 73 5.65
Morocco 68 4.60 54 4.12 61 4.14 70 4.62 81 5.53
Mozambique 138 3.22 112 3.35 129 2.36 125 3.66 137 3.52
Namibia 82 4.33 52 4.19 59 4.18 84 4.50 120 4.44
Nepal 121 3.65 123 3.26 143 1.81 56 4.85 109 4.69
Netherlands 10 5.92 7 5.72 7 6.18 41 5.20 5 6.60
New Zealand 19 5.65 2 6.06 30 5.18 61 4.75 4 6.63
Nicaragua 104 3.99 114 3.34 106 2.97 101 4.24 89 5.43
Nigeria 130 3.52 117 3.33 130 2.28 39 5.25 142 3.20
Norway 9 5.95 8 5.66 27 5.19 3 6.60 18 6.34
Oman 15 5.69 17 5.29 33 5.04 5 6.56 52 5.88
Pakistan 134 3.41 115 3.34 116 2.73 139 3.06 117 4.52
Panama 50 4.83 69 3.92 37 4.82 53 4.88 69 5.70
Paraguay 106 3.94 135 3.00 123 2.54 43 5.19 108 5.03
Peru 69 4.57 105 3.44 89 3.51 21 5.95 91 5.38
Philippines 80 4.35 94 3.57 98 3.19 36 5.33 98 5.31
Poland 61 4.66 55 4.11 73 3.89 72 4.60 43 6.03
Portugal 40 4.96 46 4.28 24 5.50 116 3.87 30 6.19
Puerto Rico 48 4.86 38 4.61 58 4.18 48 5.04 75 5.61
Qatar 7 5.96 4 5.77 31 5.12 2 6.66 23 6.29
Romania 90 4.22 116 3.33 97 3.22 58 4.83 83 5.51Russian Federation 53 4.79 133 3.09 47 4.52 22 5.80 65 5.75
Rwanda 70 4.56 20 5.20 96 3.22 78 4.56 100 5.27
Saudi Arabia 13 5.74 15 5.35 26 5.23 6 6.55 58 5.82
Seychelles 46 4.86 47 4.25 42 4.71 79 4.55 47 5.95
Senegal 120 3.68 90 3.60 124 2.51 92 4.37 125 4.23
Serbia 95 4.15 130 3.16 77 3.78 115 3.91 66 5.73
Sierra Leone 144 2.77 95 3.56 138 2.09 143 2.47 143 2.95
Singapore 1 6.34 1 6.07 2 6.50 17 6.06 3 6.73
Slovak Republic 62 4.64 104 3.44 56 4.23 54 4.87 42 6.03
Slovenia 39 5.05 58 4.05 35 4.91 50 4.94 24 6.29
South Africa 84 4.28 43 4.42 63 4.13 69 4.63 132 3.93
Spain 36 5.11 48 4.25 10 5.92 104 4.17 36 6.09
Sri Lanka 72 4.50 49 4.24 62 4.13 127 3.66 44 5.99
Suriname 83 4.29 93 3.59 79 3.74 96 4.32 82 5.52
Swaziland 131 3.49 88 3.61 99 3.17 128 3.60 135 3.57
Sweden 6 6.01 6 5.73 19 5.69 13 6.16 14 6.46Switzerland 2 6.22 5 5.75 5 6.22 8 6.38 8 6.54
Taiwan, China 17 5.67 26 5.00 17 5.72 28 5.51 15 6.45
Tajikistan 105 3.97 65 3.96 118 2.66 120 3.82 87 5.43
Tanzania 122 3.65 86 3.62 132 2.27 107 4.12 113 4.60
Thailand 45 4.89 77 3.82 46 4.62 27 5.55 78 5.56
Timor-Leste 117 3.78 103 3.45 131 2.27 38 5.29 131 4.09
Trinidad and Tobago 41 4.95 91 3.59 55 4.30 19 6.05 55 5.85
Turkey 57 4.75 64 3.98 51 4.38 55 4.86 63 5.78
Uganda 132 3.48 102 3.49 133 2.27 119 3.83 123 4.35
Ukraine 79 4.35 132 3.13 65 4.10 90 4.40 62 5.78
United Arab Emirates 5 6.03 12 5.50 8 6.12 7 6.41 37 6.08
United Kingdom 24 5.51 13 5.41 6 6.22 110 4.01 17 6.39
United States 33 5.12 41 4.59 14 5.81 111 3.97 34 6.11
Uruguay 43 4.91 36 4.63 49 4.40 63 4.72 50 5.90
Venezuela 126 3.54 144 2.36 120 2.64 126 3.66 84 5.49
Vietnam 91 4.22 89 3.61 95 3.34 106 4.16 64 5.77
Yemen 141 3.01 139 2.77 139 2.01 140 2.90 122 4.39
Zambia 108 3.92 56 4.09 111 2.85 67 4.65 129 4.11
Zimbabwe 127 3.53 101 3.50 128 2.40 122 3.77 119 4.47
Note: Ranks out of 144 economies and scores measured on a 1-to-7 scale.
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Table 6: The Global Competitiveness Index 20122013: Efficiency enhancers
PILLARS
EFFICIENCY 5. Higher education 6. Goods market 7. Labor market 8. Financial market 9. Technological 10. MarketENHANCERS and training efficiency efficiency development readiness size
Country/Economy Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score
Albania 92 3.80 76 4.11 58 4.33 68 4.40 120 3.38 77 3.69 98 2.89
Algeria 136 3.08 108 3.38 143 2.99 144 2.79 142 2.39 133 2.59 49 4.34
Argentina 86 3.84 53 4.59 140 3.18 140 3.29 131 3.18 67 3.85 23 4.94
Armenia 82 3.86 70 4.22 72 4.22 30 4.72 78 3.97 92 3.40 115 2.62Australia 13 5.20 11 5.64 24 4.87 42 4.60 8 5.35 19 5.61 21 5.10
Austria 19 5.01 18 5.48 22 4.91 32 4.69 34 4.65 17 5.70 36 4.62
Azerbaijan 67 4.05 89 3.91 60 4.31 26 4.80 98 3.73 61 4.04 76 3.51
Bahrain 35 4.58 34 4.93 16 5.10 21 4.89 18 4.99 39 4.72 103 2.86
Bangladesh 107 3.62 126 2.88 95 4.10 117 3.91 95 3.74 125 2.74 47 4.36
Barbados 49 4.37 19 5.38 64 4.29 29 4.75 33 4.66 30 5.14 134 1.97
Belgium 17 5.09 4 5.81 15 5.12 50 4.54 31 4.68 22 5.57 27 4.81
Benin 125 3.31 120 3.07 132 3.66 67 4.40 112 3.55 124 2.75 122 2.45
Bolivia 122 3.35 92 3.83 138 3.40 132 3.58 126 3.33 127 2.73 82 3.25
Bosnia and Herzegovina 97 3.75 72 4.18 109 3.92 99 4.08 119 3.41 68 3.84 93 3.07
Botswana 89 3.82 95 3.74 78 4.20 60 4.46 53 4.39 106 3.17 97 2.94
Brazil 38 4.52 66 4.27 104 3.94 69 4.39 46 4.45 48 4.43 9 5.63
Brunei Darussalam 68 4.05 57 4.40 73 4.22 13 5.07 56 4.27 64 3.95 124 2.39
Bulgaria 59 4.18 63 4.31 83 4.17 49 4.54 80 3.97 52 4.30 62 3.82
Burkina Faso 129 3.22 137 2.50 118 3.80 64 4.42 117 3.43 137 2.52 114 2.64
Burundi 144 2.56 143 1.98 139 3.28 112 3.97 144 2.31 144 2.22 140 1.57
Cambodia 85 3.84 111 3.32 50 4.42 28 4.78 64 4.11 100 3.28 89 3.15
Cameroon 111 3.57 115 3.25 89 4.15 58 4.48 105 3.64 126 2.73 87 3.18
Canada 6 5.41 15 5.57 13 5.12 4 5.45 11 5.28 20 5.60 13 5.45
Cape Verde 128 3.22 99 3.65 105 3.93 126 3.72 121 3.37 90 3.43 143 1.25
Chad 141 2.91 140 2.34 141 3.08 95 4.12 137 3.01 143 2.23 112 2.70
Chile 32 4.63 46 4.72 30 4.74 34 4.68 28 4.73 44 4.48 42 4.44
China 30 4.64 62 4.32 59 4.31 41 4.60 54 4.31 88 3.50 2 6.82
Colombia 63 4.13 67 4.27 99 3.98 88 4.17 67 4.10 80 3.62 31 4.65
Costa Rica 60 4.18 41 4.78 62 4.30 52 4.51 101 3.67 46 4.45 81 3.35
Cte dIvoire 115 3.53 123 2.99 122 3.78 71 4.38 103 3.65 99 3.32 94 3.05
Croatia 72 4.01 56 4.47 114 3.85 106 4.00 92 3.79 50 4.36 71 3.57
Cyprus 43 4.41 32 4.98 33 4.68 44 4.57 38 4.56 37 4.85 106 2.81
Czech Republic 34 4.59 38 4.87 41 4.53 75 4.32 57 4.25 31 5.06 40 4.51
Denmark 15 5.15 14 5.59 19 5.03 8 5.22 30 4.69 3 6.17 53 4.22
Dominican Republic 93 3.79 97 3.69 101 3.97 107 4.00 96 3.74 78 3.68 65 3.66
Ecuador 100 3.68 91 3.84 129 3.70 135 3.49 110 3.58 82 3.59 60 3.90
Egypt 101 3.67 109 3.32 125 3.76 142 3.06 102 3.67 91 3.43 29 4.77El Salvador 103 3.66 105 3.45 74 4.21 121 3.86 81 3.95 102 3.26 83 3.23
Estonia 31 4.63 25 5.17 31 4.73 10 5.11 39 4.51 25 5.29 96 2.98
Ethiopia 123 3.33 134 2.67 120 3.79 87 4.18 129 3.24 140 2.48 66 3.64
Finland 9 5.30 1 6.18 18 5.05 15 5.00 4 5.50 10 5.92 54 4.18
France 18 5.04 27 5.14 46 4.47 66 4.41 27 4.73 14 5.72 8 5.76
Gabon 116 3.52 122 3.05 126 3.73 63 4.43 106 3.62 86 3.53 110 2.74
Gambia, The 114 3.54 94 3.77 94 4.10 31 4.72 69 4.07 109 3.13 141 1.42
Georgia 87 3.84 93 3.82 82 4.18 35 4.67 93 3.79 76 3.71 99 2.87
Germany 10 5.27 5 5.80 21 4.92 53 4.51 32 4.66 15 5.71 5 6.02
Ghana 95 3.77 107 3.40 76 4.20 97 4.08 59 4.21 108 3.13 70 3.57
Greece 69 4.05 43 4.74 108 3.92 133 3.56 132 3.13 43 4.54 46 4.38
Guatemala 81 3.92 104 3.52 66 4.29 90 4.16 41 4.48 87 3.52 73 3.54
Guinea 134 3.10 136 2.60 127 3.71 56 4.49 135 3.07 142 2.45 129 2.27
Guyana 109 3.61 87 3.97 84 4.17 85 4.23 86 3.87 94 3.39 132 2.03
Haiti 143 2.76 144 1.90 142 3.03 83 4.24 141 2.55 138 2.49 127 2.35
Honduras 102 3.66 106 3.43 92 4.10 134 3.52 51 4.43 97 3.34 88 3.16Hong Kong SAR 3 5.54 22 5.26 2 5.44 3 5.65 1 5.89 4 6.16 26 4.82
Hungary 52 4.32 49 4.67 67 4.28 79 4.27 72 4.05 49 4.43 52 4.25
Iceland 36 4.54 13 5.60 45 4.47 12 5.10 97 3.74 8 5.99 126 2.36
India 39 4.48 86 3.97 75 4.21 82 4.24 21 4.90 96 3.36 3 6.24
Indonesia 58 4.20 73 4.17 63 4.29 120 3.87 70 4.07 85 3.56 16 5.27
Iran, Islamic Rep. 90 3.81 78 4.10 98 4.00 141 3.18 123 3.35 111 3.08 18 5.16
Ireland 25 4.85 20 5.30 9 5.24 16 5.00 108 3.60 12 5.82 56 4.13
Israel 27 4.79 28 5.07 43 4.51 40 4.61 17 5.03 29 5.23 51 4.30
Italy 41 4.44 45 4.73 65 4.29 127 3.72 111 3.57 40 4.71 10 5.63
Jamaica 80 3.93 75 4.12 80 4.19 77 4.32 55 4.30 73 3.80 100 2.86
Japan 11 5.27 21 5.28 20 4.98 20 4.89 36 4.63 16 5.70 4 6.13
Jordan 70 4.03 55 4.49 44 4.50 101 4.02 65 4.11 69 3.82 84 3.23
Kazakhstan 56 4.24 58 4.37 71 4.24 19 4.98 115 3.49 55 4.20 55 4.14
Kenya 76 3.97 100 3.59 93 4.10 39 4.62 24 4.74 101 3.27 75 3.52
Korea, Rep. 20 5.00 17 5.52 29 4.75 73 4.35 71 4.06 18 5.70 11 5.60
Kuwait 75 3.98 82 4.01 90 4.14 98 4.08 76 4.00 74 3.77 61 3.88
Kyrgyz Republic 118 3.40 98 3.66 123 3.78 72 4.36 118 3.42 130 2.63 117 2.58
Latvia 48 4.37 42 4.78 47 4.42 27 4.78 52 4.40 38 4.73 91 3.11
Lebanon 66 4.06 48 4.70 36 4.57 105 4.00 66 4.10 93 3.39 69 3.59
(Contd.)
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Table 7: The Global Competitiveness Index 20122013: Innovation and sophistication factors
INNOVATION ANDSOPHISTICATION 11. Business 12.
FACTORS sophistication Innovation
Country/Economy Rank Score Rank Score Rank Score
Albania 113 3.11 98 3.59 123 2.63
Algeria 144 2.31 144 2.54 141 2.09
Argentina 88 3.35 89 3.72 91 2.98
Armenia 98 3.29 92 3.70 105 2.89
Australia 28 4.56 30 4.61 23 4.51
Austria 10 5.30 6 5.52 13 5.07
Azerbaijan 57 3.68 69 3.91 46 3.45
Bahrain 53 3.74 39 4.34 72 3.13
Bangladesh 122 2.98 108 3.50 130 2.47
Barbados 38 3.97 36 4.39 40 3.56
Belgium 13 5.21 12 5.32 11 5.09
Benin 111 3.12 125 3.23 84 3.01
Bolivia 100 3.28 103 3.55 83 3.01
Bosnia and Herzegovina 99 3.28 109 3.48 80 3.09
Botswana 82 3.40 95 3.66 73 3.13
Brazil 39 3.97 33 4.51 49 3.42
Brunei Darussalam 62 3.64 65 3.97 59 3.31
Bulgaria 97 3.30 97 3.62 92 2.98
Burkina Faso 126 2.94 140 3.01 107 2.87
Burundi 142 2.42 143 2.67 140 2.17
Cambodia 72 3.53 74 3.88 67 3.19Cameroon 95 3.31 104 3.52 79 3.09
Canada 21 4.74 26 4.84 22 4.64
Cape Verde 119 3.01 118 3.34 120 2.68
Chad 129 2.89 138 3.04 113 2.74
Chile 45 3.87 48 4.24 44 3.50
China 34 4.05 45 4.25 33 3.85
Colombia 66 3.58 63 3.98 70 3.17
Costa Rica 35 4.04 34 4.46 38 3.61
Cte dIvoire 121 2.99 123 3.28 115 2.71
Croatia 83 3.39 96 3.66 74 3.12
Cyprus 51 3.77 52 4.18 53 3.36
Czech Republic 32 4.13 35 4.45 34 3.81
Denmark 12 5.24 9 5.41 12 5.08
Dominican Republic 105 3.25 80 3.80 118 2.69
Ecuador 93 3.32 94 3.67 96 2.96
Egypt 96 3.31 83 3.77 109 2.84El Salvador 107 3.16 82 3.79 128 2.54
Estonia 33 4.06 51 4.20 30 3.93
Ethiopia 125 2.96 129 3.18 114 2.73
Finland 3 5.62 7 5.49 2 5.75
France 18 4.96 21 5.00 17 4.91
Gabon 139 2.64 141 2.93 136 2.35
Gambia, The 54 3.74 59 4.09 52 3.38
Georgia 120 3.00 113 3.40 126 2.60
Germany 4 5.57 3 5.71 7 5.42
Ghana 102 3.27 102 3.57 95 2.96
Greece 85 3.37 85 3.74 87 3.00
Guatemala 70 3.56 57 4.15 90 2.98
Guinea 132 2.82 139 3.03 125 2.62
Guyana 71 3.54 64 3.97 76 3.11
Haiti 143 2.41 142 2.77 143 2.05
Honduras 91 3.32 77 3.83 112 2.80
Hong Kong SAR 22 4.73 17 5.09 26 4.37
Hungary 58 3.68 86 3.74 37 3.61
Iceland 24 4.69 29 4.71 20 4.68
India 43 3.94 40 4.31 41 3.56
Indonesia 40 3.96 42 4.30 39 3.61
Iran, Islamic Rep. 77 3.46 93 3.68 65 3.25
Ireland 20 4.87 18 5.09 21 4.66
Israel 8 5.33 16 5.10 3 5.57
Italy 30 4.24 28 4.75 36 3.73
Jamaica 80 3.41 79 3.82 86 3.00
Japan 2 5.67 1 5.80 5 5.54
Jordan 52 3.74 55 4.16 57 3.32
Kazakhstan 104 3.25 99 3.58 103 2.92
Kenya 56 3.68 67 3.96 50 3.41
Korea, Rep. 17 4.96 22 4.99 16 4.94
Kuwait 86 3.36 73 3.88 108 2.84
Kyrgyz Republic 140 2.63 130 3.18 142 2.08Latvia 68 3.57 71 3.89 64 3.25
Lebanon 81 3.41 58 4.14 119 2.68
INNOVATION ANDSOPHISTICATION 11. Business 12.
FACTORS sophistication Innovation
Country/Economy Rank Score Rank Score Rank Score
Lesotho 137 2.72 135 3.11 138 2.33
Liberia 59 3.67 62 3.99 54 3.34
Libya 127 2.92 116 3.35 129 2.50
Lithuania 47 3.83 56 4.16 43 3.51
Luxembourg 19 4.89 23 4.96 18 4.82
Macedonia, FYR 110 3.13 111 3.44 110 2.83
Madagascar 115 3.08 122 3.28 106 2.88
Malawi 109 3.16 115 3.38 99 2.94
Malaysia 23 4.70 20 5.02 25 4.38
Mali 114 3.11 126 3.22 88 2.99
Malta 46 3.85 43 4.27 48 3.43
Mauritania 118 3.01 117 3.35 121 2.68
Mauritius 63 3.63 41 4.30 98 2.95
Mexico 49 3.79 44 4.26 56 3.33
Moldova 131 2.85 120 3.30 135 2.40
Mongolia 112 3.11 121 3.30 100 2.93
Montenegro 69 3.57 76 3.83 60 3.31
Morocco 84 3.38 81 3.80 97 2.95
Mozambique 130 2.89 131 3.14 122 2.63
Namibia 103 3.25 101 3.57 101 2.93
Nepal 133 2.82 127 3.21 133 2.42Netherlands 6 5.47 4 5.63 9 5.31
New Zealand 27 4.60 27 4.78 24 4.43
Nicaragua 116 3.05 114 3.39 116 2.71
Nigeria 73 3.53 66 3.96 78 3.10
Norway 16 5.00 19 5.05 15 4.96
Oman 44 3.91 37 4.38 47 3.44
Pakistan 75 3.47 78 3.82 77 3.11
Panama 48 3.83 50 4.21 45 3.46
Paraguay 123 2.97 107 3.51 132 2.43
Peru 94 3.31 68 3.94 117 2.69
Philippines 64 3.60 49 4.23 94 2.97
Poland 61 3.66 60 4.06 63 3.25
Portugal 37 4.01 54 4.17 31 3.86
Puerto Rico 26 4.64 24 4.92 27 4.35
Qatar 15 5.02 11 5.33 19 4.71
Romania 106 3.20 110 3.47 102 2.92Russian Federation 108 3.16 119 3.31 85 3.01
Rwanda 60 3.66 70 3.91 51 3.40
Saudi Arabia 29 4.47 25 4.91 29 4.03
Seychelles 87 3.36 87 3.74 93 2.98
Senegal 65 3.59 72 3.89 62 3.29
Serbia 124 2.96 132 3.11 111 2.81
Sierra Leone 138 2.69 136 3.10 139 2.27
Singapore 11 5.27 14 5.14 8 5.39
Slovak Republic 74 3.50 61 4.02 89 2.98
Slovenia 36 4.02 53 4.18 32 3.85
South Africa 42 3.94 38 4.34 42 3.55
Spain 31 4.14 32 4.51 35 3.77
Sri Lanka 41 3.96 31 4.60 58 3.32
Suriname 117 3.01 112 3.41 124 2.62
Swaziland 134 2.80 124 3.26 137 2.33
Sweden 5 5.56 5 5.56 4 5.56
Switzerland 1 5.79 2 5.79 1 5.78
Taiwan, China 14 5.08 13 5.18 14 4.99
Tajikistan 76 3.46 90 3.71 66 3.22
Tanzania 92 3.32 106 3.51 75 3.12
Thailand 55 3.72 46 4.25 68 3.19
Timor-Leste 136 2.73 137 3.05 134 2.41
Trinidad and Tobago 89 3.33 84 3.76 104 2.90
Turkey 50 3.79 47 4.25 55 3.33
Uganda 101 3.27 105 3.52 82 3.02
Ukraine 79 3.43 91 3.70 71 3.16
United Arab Emirates 25 4.64 15 5.10 28 4.18
United Kingdom 9 5.32 8 5.48 10 5.17
United States 7 5.42 10 5.34 6 5.50
Uruguay 78 3.46 88 3.73 69 3.18
Venezuela 135 2.78 133 3.11 131 2.44
Vietnam 90 3.32 100 3.57 81 3.07
Yemen 141 2.50 134 3.11 144 1.89Zambia 67 3.57 75 3.84 61 3.30
Zimbabwe 128 2.90 128 3.21 127 2.59
PILLARS PILLARS
Note: Ranks out of 144 economies and scores measured on a 1-to-7 scale.
2012 World Economic Forum
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8/12/2019 Global Competitiveness Index 2012-2013
19/46The Global Competit iveness Report 20122013 | 21
1.1: The Global Competitiveness Index 20122013
Sweden,overtaken by Finland, falls one place to
4th position. Like Switzerland, the country has been
placing significant emphasis on creating the conditions
for innovation-led growth. The quality of its public
institutions remains first-rate, with a very high degree of
efficiency, trust, and transparency. Private institutions
also receive excellent marks, with firms that demonstrate
excellent ethical behavior. Nevertheless, we registered
a slight but consistent deterioration in the countrys
institutional framework over the past three years.
Additional strengths include goods and financial markets
that are very efficient, although the labor market could
be more flexible (ranking 92nd on the flexibility subpillar).
Combined with a strong focus on education over the
years and a high level of technological readiness (1st),
Sweden has developed a very sophisticated business
culture (5th) and is one of the worlds leading innovators
(4th). Last but not least, the country boasts a stable
macroeconomic environment (13th), with a balanced
budget and manageable public debt levels. Thesecharacteristics come together to make Sweden one of
the most productive and competitive economies in the
world.
The Netherlandscontinues to progress in
the rankings, moving up to 5th place this year. The
improvement reflects a continued strengthening of its
innovative capacity as well as the heightened efficiency
and stability of its financial markets. Overall, Dutch
businesses are highly sophisticated (4th) and innovative
(9th), and the country is rapidly and aggressively
harnessing new technologies for productivity
improvements (9th). Its excellent educational system
(ranked 5th for health and primary education and
6th for its higher education and training) and efficient
marketsespecially its goods market (6th)are highly
supportive of business activity. And although the country
has registered fiscal deficits in recent years (5.0 percent
of GDP in 2011), its macroeconomic environment is
more stable than that of a number of other advanc